It is stated that the lender must notify the borrower three months before the expiry of the credit, the conditions for renewal of the contract.
The tacit contract of revolving debt is not legal if the consumer is not aware of the possibility of terminating his contract, and three months before the anniversary date of the contract.
This means that in the absence of this information within the time limit, the consumer may terminate the contract for free after the renewal date.
These provisions have been the subject of some judicial developments relating in particular to the proof of the information made since the legislation does not specify what form should be provided this information.
With the development of computerized case management by credit institutions, case law has established rules regarding the obligation to inform the consumer.
Given the difficulty for these financial institutions to demonstrate sending a personalized letter, the case seems to admit that the history of producing computer accounts of its customers, making mention of sending a renewal letter, along with a facsimile of the letter, the lender meets its obligation to inform three months before the expiry of the terms of renewal of the contract.
It is nevertheless advisable to proceed by way of mail, preferably recommended to maintain a tangible proof of the sending conditions for renewal of the contract to the borrower within the legal deadline.